LIC raises stake in Asian Paints to 7% at average price of ₹2,891.25 per share

State-owned Life Insurance Corporation of India (LIC) has increased its stake in Asian Paints to 7.01% from 5.001%, the insurer said in a regulatory filing on Tuesday.

LIC’s shareholding in the paint major rose by 2.009% through open market purchases made between January 1, 2024, and December 9, 2024, at an average cost of ₹2,891.25 per share.

The additional shares, amounting to 1,92,74,225, now make LIC's total holding 6,72,40,527 shares of the company's paid-up equity capital.

Asian Paints, India’s largest home decor firm with a market capitalisation of ₹2,30,015.63 crore, is a dominant player in the paints and coatings industry. The company’s product portfolio spans decorative paints, waterproofing solutions, adhesives, modular kitchens, and sanitaryware, among other offerings.

LIC noted that the acquisition is part of its investment strategy in the ordinary course of business and does not involve any related-party transactions.

The stake raise by LIC comes at a time when Asian Paints is navigating challenges posed by a subdued demand environment.

The company attributed the decline to weak consumer sentiment, extended rains, and floods in parts of India, which impacted its domestic decorative coatings business. Its international business segment faced headwinds due to macroeconomic challenges and currency devaluation in Ethiopia, Egypt, and Bangladesh, although constant currency sales grew by 8.7%.